Ann: Appendix 3Y, page-8

With oil prices continuing to languish, we have considered where our future may lie.

Advances are being made with energy storage. Enegex is seeking to become involved in innovations that are transforming the storage of energy. Key benefits associated with this sector include the following:

1. Various forms of energy storage are expected to grow quickly and will promote increased uptake of renewable energy, in particular;
   
   
2. Australia is expected to be one of the largest markets for energy storage due to the high cost of electricity, the large number of households already with solar panels and Australia’s excellent solar resources; and
   
   
3. The potential to reduce two large contributors to the cost of electricity bills in Australia – network and wholesale energy costs.
   

Our initial initiatives are to investigate and to undertake investment in the following areas:

1. Strategic energy storage minerals such as lithium, cobalt and graphite
   
   
2. Energy storage technologies
   
   
3. Alternative and renewable energy sources
   

Our involvement in energy storage and services may take a variety of forms including direct participation, joint venture and equity investment.

Enegex continued to make small investments in Genex Power Limited (ASX Code GNX) during the quarter.

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I didn't read much about marijuana in there. They have about 475K in cash so if they did buy a company it wouldn't be worth much or they would issue and hand over a million dollars worth of 1c shares and pump up the dilution.

Something may be brewing but it usually doesn't roll out the week after a director bought shares no matter how many he bought. It may be a month or two before we see what these guys are up to.

I'm saying this because I'm here for the energy side and I believe that's where they are staying and I think a cheaper entry will present itself. But for all those that jump in now, do what you do and good luck.